Global Allies Plan Economic Retaliation Against US Tourism, Impacting Travel Sector

The U.S. tourism and global business travel sectors are facing significant challenges in 2025 due to a combination of President Donald Trump's administration's policies, including increased visa fees, stricter immigration controls, and trade tariffs. International tourism to the U.S. has dropped sharply, with declines from key markets such as Germany, Spain, the U.K., India, and China, impacted by a new $250 Visa Integrity Fee and shifting global perceptions about travel to the U.S. Business travel is also contracting, as companies reduce budgets, reroute trips to Europe and Asia-Pacific regions, and increasingly adopt remote alternatives, with nearly half of industry respondents expecting declines in international business travel. These developments are jeopardizing the economic benefits of upcoming major events like the FIFA World Cup, the U.S. 250th anniversary, and the 2028 Summer Olympics, potentially costing billions in lost spending and threatening millions of jobs. Industry experts warn that this downturn could surpass the post-9/11 tourism slump, fueled by economic and geopolitical tensions rather than public health concerns, while the U.S. continues to lose market share to faster-growing destinations. The overall outlook reflects deep uncertainty and a rapidly evolving global travel landscape shaped by U.S. government actions and their international repercussions.